Freight rates for VLCCs in the Persian Gulf hit multiweek highs as the conflict between Israel and Iran roils the global shipping market.

The intensifying conflict between Israel and Iran has led to tanker owners halting offers for Middle East oil routes, causing freight rates to jump and raising concerns about disruptions to global oil flows.

Kharg Island is a small island in the Persian Gulf. It lies 16 miles off the northwest coast of Iran. It's 451 miles from Tehran, Iran's capital — roughly the distance from Detroit to New York City. It is just five miles long,

Insurers are bracing for heightened volatility in the Middle East following the abrupt redeployment of the USS Nimitz aircraft carrier away from the South China Sea and towards the Gulf region, amid escalating hostilities between Israel and Iran.

The initial round of Israeli attacks sent oil prices 7 percent higher on Friday. Still, at about $74 a barrel, Brent crude remains below the $80 average for 2024, the Deutsche Bank analysts wrote. The market continued to waver, though, and by Monday, oil prices had fallen about 3 percent.

Iran is reportedly considering shutting the Strait of Hormuz amid escalating tensions with Israel, which could be a big blow for countries worldwide. The Strait of Hormuz is a marine entryway into the Persian Gulf,

The number of container vessels slowing down at the Strait of Hormuz is more than three times the normal level, said Ami Daniel, chief executive of artificial intelligence company Windward, amid fears that shipping may be targeted during the conflict between Iran and Israel.

U.S. oil prices already jumped last week, which could cause prices at the pump to rise about 20 cents a gallon in the coming weeks, according to one estimate.

The last time the United States held a national military parade was in June 1991, timed to welcome returning veterans of the 100-day Persian Gulf War.

By Ben Aris in Berlin Iran has somewhere between 5,000 and 6,000 naval mines, according to US intelligence estimates, which it could use to block the Straits of Hormuz and halt the flow of a fifth of the world’s oil traffic in a week.